'Ikea Swot Analysis\r'

'KStrengths 1. Supply cosmic string strategies. 1. 1. Packaging concept. The plane case is known of its IKEA which is really effective for transporting products because more(prenominal) products empennage be shipped at the same time. Consequently, expatriate cost will be cheaper. Furthermore, the flat packaging bowdlerizes some materials usage. However, it has some weak areas to work on such as protection and wholeization. 1. 2. New whole load carrier. IKEA has workd new carrier which is called â€Å"Loading shelf”, is a flexible unit load carrier.It flush toilet save m iy as a position of total logistic solution and also profit the transport be more brashness. The loading ledge has been used for two years within IKEA’s supply chain and the result has satisfied for IKEA because it dissolve reduce damages in satisf performanceory processes. 1. 3. pose talking to. IKEA’s products are delivered directly from hand overr to distinguishable stores because this is the cheapest way for distribution. Furthermore, it fire decrease the transportation space and downcaster carbon release. In term of process, the satisfactorys do not transport to distribution center because it butt joint be directly to stores.This process is very might and special one. So, they crumb save the cost of one time transport. Figure 1 Direct delivery distribution. 1. 4 Sustainable relationships. IKEA focuses on long-term supplier relationship. IKEA usually buy a colossal volume for a plenty of years. As a result, they can negotiate at low outlay. Moreover, the suppliers also light up advantages because their products are guaranteed showing. 2. IKEA’s culture and concept. 2. 1. Powerful ecumenical company. IKEA has strong global brand and concept which is guaranteed good look at lower price. . 2. IKEA’s stack IKEA notes their goal that â€Å"to create a separate general lifespan for many people”. 3. environmental perspe ctives. 3. 1. parkland process. IKEA uses materials that are environmentally friendly. For example, renewable materials, recycling unwarranted products, and so on 3. 2. New technology. Using new technology to reduce the amount of raw material needed. 3. 3 Effective transportation. IKEA transports their products by using rail and sea as much as possible to reduce the impact on environment. Opportunities 1. Environmentally lineage.IKEA believes that â€Å"environmentally focussed business conduct will results in good return even in a price sensitive market”. Nowadays, consumers demand in common products is continue to improver. 2. Low price products. IKEA depends on the affordable manufacturing countries as China and India. This is contributed IKEA’s products to be cheaper. Moreover, client’s demand of low price products is higher(prenominal) because the serious current pecuniary issues. 3. Working on sustainability This is the main part of IKEA brand. This statement can be supported by: 3. 1. RelationshipBuilding relationship and good communion with stakeholders, consumers, and co-workers are IKEA’s concept. 3. 2. Cooperate social responsibility. IKEA put down in social responsibility this include to be supporter for many charities. 3. 3 Online website. IKEA provides online tips and ideas for sustainable life at star sign. 3. 4 Environment IKEA uses sustainable resources, renewable energy, reducing water use, and green transportation. Weaknesses 1. IKEA surface. The big size of IKEA’s business is hard to control quality and standards. For example, quality of product is concern in some regions. . Inconvenience located. The flagship stores are located far remote from the city center; as a consequence, consumers check to travel a long distance to give way to the stores. Moreover, they also have to collect a large in convenience packages to take them home. 3. Diverse market. The departure tastes of consumers in disparate regions. IKEA has many stores in different region. So, they have to adapt the style of products in order to satisfy each region consumers. Threats 1. Competitors. The growth of competitors, they can enter the low cost household and furnishers markets.Furthermore, they act like IKEA’s style which is the model of low cost products and flat packaging. 1. 1 Offering helpers. A better services offering from competitors. For instance, they offer home delivery, lighten installation, etc. 1. 2 More products. The large suppliers such as Tesco and Walmart, they do not deal only home furniture, also offer electronics, groceries, etc. 2. Economic situation. The target root of IKEA is consumers with limited financial income. Therefore, this economic situation will impact and exercise IKEA’s business due to a unbend down consumer spending and income reduces.IKEA’s SWOT compendium| Strengths| Weaknesses| 1. Supply chain strategies. 2. IKEA’s culture an d concept. 3. Environmental perspectives. | 1. IKEA size. 2. Inconvenience located. 3. Diverse market. | Opportunities| Threats| 1. Environmentally business. 2. Low price products. 3. Working on sustainability. | 1. Competitors. 2. Economic situation. | Gap digest Next 0-3 years Present Issue| looking| ? A weak online support. †IKEA neglect of online purchasing options. It forces customers to go to stores. This probably causes losing some profits due to stretch forth located of some stores.?Do It Yourself †The target group of IKEA may require convenience installation. IKEA does not provide this point. Sometimes IKEA has overlooked their customers.? Using the new unit load carrier takes longer time than traditional one.? Due to increasing material flows, DC needs the effective solutions to handle it.? The distribution will increase in IKEA supply chain.? Over stock.? A neediness of innovation of products? The highly flow of visitors which cause a long queues to check o ut. This is due to a lack of manpower. | ? Developing the online stores to compete with its competitors.Also, increasing online purchase by a space simulator.? The IKEA competitors, they offer delivery products and free installation with good ability technicians. IKEA will provide immediate purchase and take home, and offer service but allows customers make their own decisions.? Providing information and noesis of the new unit load carrier is very important to use it efficiently. It is also decreasing a damage and waste of products.? A great handled can reduce effect at DC by using, for example automatic picking.? Balance supply chain by using supported software and better management.?Hiring new generations staffs which are diverse of personalities. Consequently, they can create some new innovated products.? IKEA uses Beonic’s tra? c perceptivity visitor flow system to ensure its bank check never short staffs. | The times 100 business case studies, viewed 13 Aug 2012 , http://businesscasestudies. co. uk/ikea/ Jonsson A. and Mathiasen B. , 2004, Consequences of the implementation of the Loading Ledge, Lund launch of Technology Mehnaz S. , Case analysis IKEA, viewed 13 Aug 2012 http://www. scribd. com/ mendelevium/59951004/Case-Analysis-IKEA\r\n'